NEW YORK Ferrous scrap
export prices off the East Coast dropped by about $6 per tonne
Friday after exporters booked several bulk sales to Turkey in
Two exporters reportedly
completed double bulk cargo sales to different Turkish mills on
Thursday and Friday at lower prices than recent
Market sources in the United
States and Turkey confirmed one 85,000-tonne sale to Turkey
comprising an 80/20 mix of No. 1 and No. 2 heavy melt,
shredded, and plate and structural scrap at $408, $413 and $418
per tonne c.f.r. Turkey, respectively.
A second U.S. exporter was said
to have made another sale of two bulk cargoes to a different
Turkish steel producer at the same price levels.
These prices are nearly $6 per
ton lower than previous sales, which averaged about $414 per
tonne for HMS 1&2 (80:20) delivered into Turkey. Exporters
sold seven bulk cargoes the previous week at around the same
price level (
amm.com, Aug. 13) before allowing prices to cool
slightly this past week.
Sources said the slightly weaker
pricing was brought on by softer European sales into Turkey and
relatively lower demand. On Friday, sources reported that a
40,000-tonne bulk cargo from the United Kingdom was sold at a
composite price of $409 per tonne c.f.r. Turkey for HMS 1&2
(80:20) and plate and structural scrap.
A second 35,000-tonne cargo out
of Europe was sold into Turkey at between $406 and $408 per
tonne c.f.r. for 28,000 tonnes of A3 scrap and 7,000 tonnes of
plate and structural, a number of sources said.
Following the double bulk cargo
sales, U.S. sources said they expect the market to turn quiet
over the next few days as Turkey enters a long holiday.
"There will be a dearth of
activity in the marketplace with Turkish Ramadan bank holidays
basically taking them out of serious play for at least a week.
It will get quiet. On the plus side for exporters, freight is
not something to lose sleep over at moment," said one
Meanwhile, West Coast market
participants said the market was struggling to book bulk sales
into South Korea and Thailand.
No bulk sales were reported
after a lone bulk shipment to Vietnam was made earlier this
Sources also confirmed previous
reports that a large South Korean consumer had canceled a bulk
order made two weeks ago with a U.S. exporter at $407 per tonne
c.f.r. for No. 1 heavy melt, originally scheduled for October
AMM understands that
the South Korean consumer expects prices to trek lower by
October and was able to step out of the contract amicably as
domestic prices in the United States strengthened, offering the
exporter a chance to secure higher pricing for its scrap.
Earlier rumors that there may have been an issue in raising a
line of credit were deemed unfounded by the market.
South Korean demand for West
Coast bulk is likely to remain weak over the next few weeks,
one source said, as consumers have built strong scrap
inventories and are able to shop from nearer shores.
One of the largest consumers in
South Korea is estimated to be running an inventory of about
600,000 tonnes of ferrous scrap across three locations and is
not likely to step into the U.S. market until September.
"There will be no offers until
next week, and by the beginning or middle of September, (the
consumer) will look to up new cargo from the U.S.," a second
West Coast source said.
Speculation that a bulk sale had
been completed to Thailand was also shot down by sources,
including the exporter in question.
"I have not been able to do a
deal. They need to buy but are waiting to see where the market
goes," a source at the rumored exporter said.